Geopolitics and Hidden Forces Rattle Bitcoin Markets | US Crypto News

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee and settle in—markets are shifting, fear is rising, and Bitcoin is dancing to a tense global rhythm. From geopolitical sparks to shadowy traders making millions, the pioneer crypto is on edge, teetering between consolidation and sudden, dramatic moves.

Crypto News of the Day: Geopolitical Tensions and Market Fear Shake Bitcoin

Bitcoin dropped sharply ahead of the US market open on Tuesday, extending a volatile start to 2026 amid geopolitical and macroeconomic concerns.

The pioneer crypto fell 1.7% to roughly $67,600, mirroring weakness in equity futures. The Nasdaq 100 contracts fell 0.9% while the S&P 500 contracts dropped 0.6%, signaling a softer start on Wall Street.

Bitcoin’s correlation with high-beta tech stocks has strengthened in recent months, making the pioneer crypto increasingly sensitive to risk-off sentiment in equities.

“Investors are turning cautious amid rising tensions around Iran, fresh debate over AI’s broader economic impact, and uncertainty over Federal Reserve rate cuts after recent inflation data,” reported Walter Bloomberg on X.

The macro backdrop has contributed to sustained outflows from US-listed Bitcoin ETFs. Last week alone, investors withdrew $360 million, marking the fourth consecutive week of net outflows.

Spot Bitcoin ETF Outflows. Source: SoSoValue

The combination of geopolitical uncertainty, ETF withdrawals, and leverage unwinds has pushed Bitcoin down by more than 50% from its October 2025 peak of $126,000.

“Analysts now view $60,000 as key near-term support, while further macro shocks could see prices revisit the $50,000 range,” Walter added.

It aligns with a recent Galaxy Digital projection, in which head of research Alex Thorn estimated Bitcoin drifting toward the 200-week average near $58,000.

Meanwhile, market sentiment is at levels not seen since the depths of the 2022 bear market, with only 55% of Bitcoin’s supply currently in profit and roughly 10 million BTC held at a loss.

INTEL: Bitcoin’s supply in profit has fallen to 55%, with roughly 10 million $BTC held at a loss, a level last seen during the 2022 bear market bottom pic.twitter.com/yghIpqJ6hK

— Solid Intel 📡 (@solidintel_x) February 17, 2026

Elsewhere, CryptoQuant’s Fear and Greed Index suggests extreme caution, at 10, firmly in the “extreme fear” zone.

CryptoQuant Fear and Greed Index. Source: CryptoQuant Dashboard

Shadow Shorts and Safe-Haven Bets Highlight Crypto’s Risk-Off Mood

Adding to the market’s nervous undertone is the presence of aggressive short positions. Reports indicate that a not-so-popular trader has made $7 million by shorting multiple crypto assets, including $3.7 million on Ethereum and $1.45 million on ENA.

NOBODY KNOWS HIM – BUT HE’S MADE $7M SHORTING EVERYTHING

He only has 1.3K followers on X, but 0x58bro is a multimillionaire trader currently up $7M on his positions. He’s shorting EVERYTHING.

He has made the most profit shorting ETH (+$3.7M) and ENA (+$1.45M). How long will he… pic.twitter.com/OXNEm9ZJIJ

— Arkham (@arkham) February 17, 2026

While largely anonymous, this trader exemplifies the growing sophistication and audacity of market participants betting on downside risk.

Meanwhile, broader investor behavior also reflects a flight toward perceived safety. The February global fund manager survey from Bank of America (BofA) highlighted gold as the most crowded trade, with 50% of managers holding long positions, while top US tech stocks (Nvidia, Alphabet, Apple, Amazon, Microsoft, Meta, and Tesla) ranked second, cited by 20% of respondents.

GOLD REMAINS MOST CROWDED TRADE, TECH SECOND: BOFA SURVEY

According to Bank of America’s February global fund manager survey, 50% of managers say buying gold is the most crowded trade, slightly down from 51% in January.

Meanwhile, 20% of managers view buying top U.S. tech…

— *Walter Bloomberg (@DeItaone) February 17, 2026

This preference for traditional hedges reflects heightened risk aversion in financial markets. Despite the current turbulence, investors should not act in panic. Bitcoin’s history suggests it often consolidates after sharp pullbacks before resuming longer-term trends.

However, the combination of geopolitical flashpoints, ETF outflows, concentrated shorting activity, and extreme fear readings suggests that market volatility may persist in the near term.

Chart of the Day

Bitcoin, Nasdaq, S&P500 Price Performance. Source: TradingView

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

$1.28 trillion wiped out as gold & silver crash—Is Lunar New Year liquidity driving the drop?
Several crypto media outlets remove scam study, sources allege external pressure.
Metaplanet reports FY2025 results as Bitcoin unrealized losses top $1 billion.
Why are traders betting on $20,000 gold price after a historic crash?
Kevin O’Leary warns Bitcoin’s quantum problem may be bigger than expected.
XRP builds pressure as holders accumulate — Is a break above $2 next?
Why Bitcoin could face another dump in February.
XMR price jumps 10% after new report on Monero’s shadow market dominance.
Bitcoin or gold? Strategist says it’s a bet on Trump’s success vs. America’s failure.
Veteran analyst says Bitcoin’s safe-haven dream is cracking — but crypto’s next era may just be beginning.